Denmark
Types of Corporate Entities
Setting up a company in Denmark involves a selection of the appropriate business type that aligns with your goals, followed by registration with the Danish Commerce and Companies Agency. Various types of business entities are available in Denmark, and these are open to both local and foreign investors. Here is a summary of the key types of companies:
Danish Private Limited Company:
- Requires at least one shareholder, irrespective of residency.
- The minimum share capital is 80,000 DKK, divided into shares.
- These shares are non-negotiable and non-transferable.
- Shareholders’ liability is limited to their contributions.
Danish Public Limited Company:
- Requires a minimum of one founder.
- Must provide a minimum share capital of 500,000 DKK.
- Shareholders are not personally liable for company obligations.
- Shares can be offered to the general public.
Danish General Partnership:
- Established with at least two members, who can be individuals or legal entities.
- Full liability for company obligations rests with the founders.
- Registration with the Danish trade register is mandatory.
Danish Limited Partnership:
- Requires a minimum of two partners, who can be individuals or legal entities.
- Comprises at least one general partner and one limited partner.
- The limited partner has liability limited to their contribution.
- Mandatory registration with the Danish trade register.
Danish Sole Proprietorship:
- Established by an individual with full liability for company obligations.
- Required to register with tax authorities if the activity involves trading or if there are employees.
Branch and Representative Office:
- Options for foreign corporations entering the Danish market.
- A representative office is suitable for marketing and research but not commercial activities.
- A branch office is an extension of the parent company conducting the same business activities in Denmark.
It’s crucial to consider the capital available, future expansion plans, and other factors when selecting a business entity type. Investors have the flexibility to change the business form if needed.
Company Registration and Requirements in Denmark
All new companies in Denmark must be registered with the Danish Business Authority, tax authorities, and customs authorities for VAT purposes. Registration commences with the drafting of a Memorandum of Association for the new legal entity and must be completed within two weeks of signing the Memorandum.
Regarding accounting and reporting requirements in Denmark, the Danish Financial Statements Act applies to companies. Legal entities such as A/S must submit annual financial statements, including the annual report, profit and loss account, cash flow statement, balance sheet, and explanatory notes. Branches in Denmark must also submit the foreign company’s annual report to the Business Authority.
For comprehensive information on each type of company, please feel free to contact our company formation specialists.
Services
Our administrative services encompass:
- Business name registration.
- Maintenance of statutory registers and other formal documentation.
- Provision of a registered office address, domiciliation, and the secure keeping of mandatory company files.
- Assistance with opening bank accounts.
- Proficiency in bookkeeping services.
- Annual reports.
- Payroll administration.
- Preparation, attendance, and/or drafting of minutes for annual general meetings, board meetings, and other corporate gatherings.
- Support in preparing and executing resolutions.
- Assistance with the preparation and filing of forms for any changes in your company.
- Management of all incoming and outgoing correspondence.
- Offering general corporate and legal assistance.
- Addressing ad hoc tasks and requirements as needed.
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Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.